NTPC Green Energy (NGEL) on Tuesday said it is planning to raise up to ₹9,000 crore to repay an outstanding debt liability.

The company, a subsidiary of state-run NTPC, has invited offers for raising the loan amount from banks or financial institutions. The last date to submit bids is March 6, 2023 and the bids will be opened on the same day. 

“As per the BTA (including amendments thereof) executed between NGEL and NTPC, NGEL intends to raise fresh debt and repay outstanding liability of around ₹8,200 crore towards NTPC by March 31, 2023 along with applicable interest cost. Also, additional funds to the tune of about ₹800 crore would be required for additional debt liability (if any) based on the Balance Sheet as on the Closing date and for balance capex payments of projects which are yet to achieve Full COD,” the request for proposal (RfP) document said.

NTPC incorporated NGEL in April 2022 for consolidating its renewable energy (RE) businesses and aggressively pursue its green/sustainable energy plans.

NGEL, consequent to the transfer of 15 RE projects from NTPC through a business transfer agreement (BTA), will have operational/under implementation RE projects aggregating to 2,861 MW, 14 solar power projects of 2,811 MW and a wind power project of 50MW. 

Out of the above 15 projects, 13 projects (2261 MW) are fully operational and the remaining 2 Projects are partly operational (operational capacity 350 MW out of 600 MW) taking Cumulative Operational Capacity to 2611 MW as on date. These 15 RE projects have firm PPA tie-up for 100 per cent capacities with State DISCOMs, CPSE.

Besides, NGEL will also acquire 100 per cent stake in NTPC Renewable Energy (NREL) pursuant to a share purchase Agreement (SPA), vehicle for undertaking organic growth.

Future plans

NGEL plans to build -up capacity through both organic and inorganic routes, while NTPC REL shall act as vehicle for organic growth only and other green energy business including green hydrogen/ ammonia, JVs with other PSUs, bilateral arrangement with commercial and industrial entities shall be undertaken in NGEL.

NGEL aims to be the flag-bearer of NTPC’s RE journey with a rapid capacity enhancement reaching to around 12 gigawatts (GW) operational capacity by FY25 on a consolidated basis and further scale up to achieve the larger target of 60 GW by FY32. NGEL have multiple prongs to achieve growth over the decade and act as a premier RE player in India as well as globally.

NTPC, India’s largest power generator, has a total installed capacity of more than 70 GW.